Dreier Trustee Inks $55M Settlement With Hedge Fund

Law360, New York (June 22, 2011, 5:05 PM EDT) -- A New York bankruptcy court approved a $55 million settlement Tuesday between the trustee overseeing the liquidation of Dreier LLP and a hedge fund that allegedly lost $100 million to a loan fraud scheme perpetrated by the firm's imprisoned founder.

The deal resolves claims that two Fortress Investment Group LLC subsidiaries asserted against Dreier relating to a series of bogus loans allegedly brokered by attorney Marc S. Dreier. Under terms of the settlement, Fortress' claims will be allowed as unsecured claims under the defunct firm's Chapter...